President Personally 'QE'? Trump Announces $200 Billion Mortgage Bond Purchase Plan

Jan. 9 — Former U.S. President Donald Trump announced plans Wednesday to launch a $200 billion mortgage-backed securities (MBS) purchase program aimed at lowering mortgage rates and easing the housing affordability crisis. Market observers view the move as Trump’s push for a “personal take” on quantitative easing (QE) — going beyond intervening in the Federal Reserve’s rate-cutting efforts. In a Truth Social post, Trump said he had “instructed relevant officials to purchase $200 billion in mortgage-backed bonds” — with goals to cut mortgage rates, lower monthly costs, and boost homebuyer purchasing power — while blaming the ongoing housing crisis on the Biden administration. U.S. Housing Finance Agency Director Bill Pulte told the Financial Times the plan will be executed by Fannie Mae and Freddie Mac and does not need congressional approval. Under current agreements, the two agencies still have a combined $200 billion in available mortgage investment capacity. Analysts note the move closely mirrors the Fed’s post-2008 financial crisis policy of using MBS purchases to stabilize markets. Even as the Fed has cut rates by 75 basis points total, the current 30-year fixed U.S. mortgage rate sits at 6.16%, and housing affordability remains a top political and economic issue. Amid high inflation and rising living costs, Trump’s action is viewed as an attempt to directly intervene in housing and financial markets via executive power to boost voter confidence.